Responding to the procurement of goods and services in relation to the COVID-19 pandemic, the Indonesian Antitrust Commission (locally known as “Business Competition Supervisory Commission” or “KPPU”) on 24 March 2020 issued Press Release No. 16/KPPU-PR/III/2020.  

Dentons HPRP’s lawyer, Fabian Pascoal (Partner) have taken a look at the press release and highlight important points below.

The Commission:

1. views direct appointment or other forms of Government policy in relation to doing business in a state of emergency as something exempted from the business competition legislation;
2. has asked businessesnot to indulge in the practice of cartels or agreements directly determining excessive prices and/or hoarding or retaining protective equipment, other health products and food-crop commodities needed by the public;
3. will take firm legal action if measures are found in the distribution and logistics process which hamper the disaster management process;
4. will in the coming periods prioritize preventive action, particularly in order to assist and advocate with the Government in the preparation of various economic recovery policies which are in line with business competition principles and to also urge businesses to still behave in a sound business manner;
5. will also make the process of giving notice of mergers, consolidations, or acquisitions (including transfers of productive assets) easier and to accelerate the process of evaluating such transactions so that the investment and businessescollaboration processes in the recovery efforts will not hamper the national economy; and
6. will take part in encouraging large and medium businesses to continue their endeavors to enter into partnership with micro and small businesses so that such business actors will be assisted to (i) survive in an economic slowdown, (ii) avoid any attempts at business discrimination against them, and (iii) thereby the micro and small businesses will be able to rise again and assist in the nation’s economic recovery. ​

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The article above was prepared by Fabian Buddy Pascoal (Partner).

This publication is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying the information contained in this publication to specific issues, transactions or matters. For more information, please contact us at dentons.hprp@dentons.com.

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